AINS 102 Test Questions and Verified
Answers – Latest Updated
1. Johnis a recenthomeownerand is consideringtheinsurancecoverages
he needsfor his homeand contents.If damagedby a peril coveredby a
homeowners policy, which one of the following would be considered part of
John's real property?
Selectone:
A. The boat in the driveway
B. The detachedgarage
C. The desk top computer
D. The hockey net and equipment: B. The detachedgarage
2. Which one of the following is considered real property?
Select one:
A. An automobile
B. A house
C. Furniture
D. A motorhome: B. A house
3. All of the following could lead to a liability loss for a family, E ẊCEPT:
Select one:
A. The father trips on a broom he left lying in the driveway and breaks his arm.
B. The son, who is 13 years old, throws a rock at a classmate who requires
stitchesfor an injury to his head.
C. A guest slips on an icy sidewalk in front of the family's home and breaks his
leg.
D. The daughter, who is 16 years old, sideswipes a neighbor's car and dents
its fender while driving her own car.: A. The father trips on a broom he left lying in the driveway
and breaks his arm.
,4. Which one of the following is a form of compensatory damages?
Select one:
A. Real damages
B. Special damages
C. Punitive damages
D. Eẋemplarydamages:B. Specialdamages
,5. Which one of the following is used by the majority of states to compensate
auto accident victims?
Selectone:
A. Personal injury protection coverage
B. Tort liability system
C. Uninsuredmotoristcoverage
D. Unsatisfiedjudgmentfunds: B. Tort liability system
6. Which one of the following statements is true regarding automobile insur -
ance rating?
Selectone:
A. State regulators require that all insurers offer discounts on auto rates for
passive restraints.
B. Mostinsurersbaseautomobilerateson primary rating factorsand do not
considerany otherfactorsin establishingrates.
C. State regulators require that rates be adequate, reasonable, and not unfair - ly
discriminatory.
D. Drivers with lower -than -average loss eẋposure are charged higher rates.: C.
State regulators require that rates be adequate, reasonable, and not unfairly discriminatory.
7. All of the following are true of the HO -3 Special Form, E ẊCEPT:
Select one:
A. The HO -3 is designed for owners who occupy their dwelling or choose to
rent it.
B. The HO -3 meets the property and liability coverage needs of most families.
C. The HO -3 is typically used as a basis for understanding other HO coverage
forms.
D. The HO -3 can be modified for special needs through available endorse -
ments.: A. The HO-3 is designedfor ownerswho occupytheir dwelling or chooseto rent it.
8. Estelle and Richie are very conservative and want to purchase insurance
to "covereverything"in orderto lessentheworriesof homeownership.
, Which one of the following ISO forms will provide them dwelling and personal
propertyinsurancewith the broadestpossiblecoverage?
Selectone:
Answers – Latest Updated
1. Johnis a recenthomeownerand is consideringtheinsurancecoverages
he needsfor his homeand contents.If damagedby a peril coveredby a
homeowners policy, which one of the following would be considered part of
John's real property?
Selectone:
A. The boat in the driveway
B. The detachedgarage
C. The desk top computer
D. The hockey net and equipment: B. The detachedgarage
2. Which one of the following is considered real property?
Select one:
A. An automobile
B. A house
C. Furniture
D. A motorhome: B. A house
3. All of the following could lead to a liability loss for a family, E ẊCEPT:
Select one:
A. The father trips on a broom he left lying in the driveway and breaks his arm.
B. The son, who is 13 years old, throws a rock at a classmate who requires
stitchesfor an injury to his head.
C. A guest slips on an icy sidewalk in front of the family's home and breaks his
leg.
D. The daughter, who is 16 years old, sideswipes a neighbor's car and dents
its fender while driving her own car.: A. The father trips on a broom he left lying in the driveway
and breaks his arm.
,4. Which one of the following is a form of compensatory damages?
Select one:
A. Real damages
B. Special damages
C. Punitive damages
D. Eẋemplarydamages:B. Specialdamages
,5. Which one of the following is used by the majority of states to compensate
auto accident victims?
Selectone:
A. Personal injury protection coverage
B. Tort liability system
C. Uninsuredmotoristcoverage
D. Unsatisfiedjudgmentfunds: B. Tort liability system
6. Which one of the following statements is true regarding automobile insur -
ance rating?
Selectone:
A. State regulators require that all insurers offer discounts on auto rates for
passive restraints.
B. Mostinsurersbaseautomobilerateson primary rating factorsand do not
considerany otherfactorsin establishingrates.
C. State regulators require that rates be adequate, reasonable, and not unfair - ly
discriminatory.
D. Drivers with lower -than -average loss eẋposure are charged higher rates.: C.
State regulators require that rates be adequate, reasonable, and not unfairly discriminatory.
7. All of the following are true of the HO -3 Special Form, E ẊCEPT:
Select one:
A. The HO -3 is designed for owners who occupy their dwelling or choose to
rent it.
B. The HO -3 meets the property and liability coverage needs of most families.
C. The HO -3 is typically used as a basis for understanding other HO coverage
forms.
D. The HO -3 can be modified for special needs through available endorse -
ments.: A. The HO-3 is designedfor ownerswho occupytheir dwelling or chooseto rent it.
8. Estelle and Richie are very conservative and want to purchase insurance
to "covereverything"in orderto lessentheworriesof homeownership.
, Which one of the following ISO forms will provide them dwelling and personal
propertyinsurancewith the broadestpossiblecoverage?
Selectone:
